Trading Set Up for Banknifty on 24/06/2019

1. SET UP to Trade Nifty Bank.

  • Trend: (⇔ - Not define trend)
  • Market is not trending anywhere, But today seem to be good day to Buy as last day fall will lead to attracting value buyers today.
  • Market set up :(⇔- Neutral to trend)
  • Today Bank Nifty Force set up is Not Supportive for Buying. So, Today is Bad set up to buy. You should Avoid buying.
  • F&O Trader position: (⇑ - Basis rise)
  • The Difference between Bank Nifty future and spot (Basis) is now 9 Points. The Basis has risen from last day about 22 points.
  • Bottom Line :
  • The Trend is Not define, But last day negative move can support today Up-move and give follow up on upside>> Bad set up to Buy.>> Basis rise.

    2. Sentiments

    • Global markets:
    • Dow Jones future is Positive & Hang Seng is Flat.
    • What is on News/TV
    • Counter trade is working as of now.
    • Positive News-flow::
    • Negative News-flow::
    • US-Iran tensions , Market breath is still Nagative, crude is also minor worry .
    • Bottom Line:
    • Sentiments is Mild Positive. Sentiments are not supportive of on going Trend.

    3. Game Theory ( Tug of war between Buyer & Seller)

    • From where New Buying comes?
    • A.Since sentiments are Mild Positive, the Outside Trader will Buy with very Mild Force. B. Trader's with a short Position-"less" chance for short covering today.
    • From where new selling come?
    • A.Since Sentiments are Mild Positive, Outside Trader will on short on Rise Only.
    • Will buyers buys on dips?:
    • On Fall- Since the Trend is 'Not Define', There will be a moderate number of Buyers at the lower end which propels the Market to go up from Dips. Moreover at Dips Sellers who wanted to sell has sold off. So buying on dips is the Dominant Strategy as More Buyer and lack of Seller at the bottom of This Non-Trending Trend

    4. what I am going to do today (In bank nifty)

    • Set Up:
    • Today Bank Nifty Force set up is Not Supportive for Buying. So, Today is Bad set up to buy. You should Avoid buying.
    • Sentiments:
    • SentIments is Mild Positive.
    • Trading Edge:
    • My Today Trading edge points clubbing Setup & Sentiments is 62 Point. Since My Trading Edge is more than 50, I will look for Buying Opportunity only.
    • Entry on Edge:
    • Buy- When BN is below 30569.35
    • Exit on Fair price:
    • Fair Price for Today's Trade is 30799.35
      It's Significant intellectual property & New way to Analyse the Market which use Unconventional Instruments Like Behaviour Finance & Game Theory for getting clear & Unbies idea for Active Derivative Traders.

    Abhikumar Patel